Mercer passes tax measure to fund local roads

By RICHARD JENKINS

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MERCER, Wis. — With its lakes and trails, Mercer is a popular destination for those visiting Iron County and Wisconsin’s Northwoods. The town is now looking to those visitors to help fund necessary road repairs, as the town board recently passed a Premier Resort Area Tax on certain purchases.

“This is the best way for tourists to share in the cost of maintaining town roads,” Town Chairman John Sendra told the Daily Globe. “In lieu of a PRAT tax, real estate taxpayers would still have to pay for road repairs and construction. … The residents get the burden of the tax on real estate taxes; whereas with a PRAT tax, it puts the burden on tourists.”

The board passed the measure at its Aug. 2 meeting, Sendra said, instituting a .5 percent tax on items, “Typically purchased, leased or rented when tourists come into the resort area.”

This includes a variety of businesses according to information on the Wisconsin Department of Revenue’s website — including family clothing stores, eating and drinking establishments, miscellaneous apparel and accessory stores, gas stations, liquor stores, sporting goods and bicycle shops, hobby and toy shops, novelty and souvenir shops, hotels and motels, various campgrounds and public golf courses.

Sendra said the state of Wisconsin’s rough estimate showed Mercer could generate in the ball park of $200,000 annually from the measure. The money generated from the new tax will be used solely for repairing and maintaining the town’s roads.

“That’s what it’s earmarked for,” Sendra said.

The approximately 175 miles of roads Sendra said are within the town’s limits means Mercer is one of the smallest communities in the state while covering one of the largest geographical areas.

Roughly six communities already have instituted this tax — including Eagle River, Bayfield, Wisconsin Dells and Rhinelander. Sendra said Minocqua is also in the process of implementing it as well.

While Sendra said he has heard some criticism of the idea, he compared it to the room tax the town passed in 2008.

“We heard a lot of negativity back then, but nothing negative ever occurred — it was a positive thing for us,” Sendra said. “It put us on the map in terms of tourism.”

The revenue generated from that tax allowed the town to advertise outside the area, drawing additional visitors as Sendra said tourism has grown “drastically” since the room tax went into effect.

A study done when the tax was being implemented found 65 percent of the town’s economy came from tourism, according to Senra, who said these visitors use the town’s roads as well as the locals and should contribute to their upkeep.

If Mercer’s previous experience using tourism to benefit the community wasn’t enough reassurance, Sendra said those communities who have already implemented the measure have seen their businesses continue to succeed rather than suffer.